Fashion retailer Forever 21 and its U.S. subsidiaries have commenced voluntary Chapter 11 cases in the United States Bankruptcy Court for the District of Delaware. The company’s Canadian subsidiary filed for and was granted protection under the Companies’ Creditors Arrangement Act by the Ontario Superior Court of Justice in Toronto.
Forever 21 intends to use these proceedings to facilitate a global restructuring that will allow the company to focus on a profitable core part of its operations. As part of its restructuring strategy, the company plans to exit most of its international locations in Asia and Europe, as well as its Canadian operations, but will continue operations in Mexico and Latin America.
